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Back to Glossary
General TradingS

Senkou Span

A component of the Ichimoku Kinko Hyo indicator system consisting of two lines — Senkou Span A and Senkou Span B — that form the cloud (Kumo). Senkou Span A is the average of the Tenkan-sen and Kijun-sen plotted 26 periods ahead, while Senkou Span B is the average of the highest high and lowest low over the past 52 periods plotted 26 periods ahead.

Example

“When price broke above the Senkou Span cloud on the daily chart, the trader took it as a bullish signal and entered a long position on ETH/USD.”